Proof of stake blockchain Tezos has unveiled a series of new updates. Dubbed Tezos X, the upgrade is a move towards a more efficient Layer 1 (L1) blockchain.

Per a June 27 blog post, the developers consider the upgrade the next evolution for the self-upgradeable Tezos blockchain. 

When deployed, the blockchain is expected to see improvements in performance, composability and interoperability. The developers are looking to optimize each component so that they work seamlessly together.

A modular approach

Developers have been working on this update since early 2022. The goal was to move away from its “monolithic design”, which required every node to replicate all activity.

This resulted in higher network loads, which in turn translated to poor performance. The network was also more power and bandwidth hungry at this stage.

This is addressed by taking a modular approach. Different roles are assigned to interconnected groups of nodes, resulting in better performance. 

One of the key upgrades in Tezos X is the introduction of Smart Rollups. With this, the developers claim the network could hit speeds of one million transactions per second.

The performance was already demonstrated in July 2023 by combining Smart Rollups with Data Availability Committees (DACs). DACs are an efficient approach for publishing rollup data outside the constraints of L1 block space.

Since then, a dedicated Data-Availability Layer (DAL) has been implemented, which offers better performance.

Further, by “pipelining and other optimizations,” the developers were able to reduce block time from 60 seconds to 10 seconds. The data needs of Smart Rollups are offered by the DAL without compromising decentralization.

Scalability to get a massive boost

Tezos X also addresses composability issues via vertical scaling. 

As a result, Smart rollups can “scale vertically with raw processing power,” removing the tradeoff between hardware requirements and decentralization.

Tezos X looks to free up layer 1 load using a single canonical rollup. With the canonical rollup handling the applications and transaction history, the main chain only needs to handle consensus and settlement.

Developers are targeting one million transactions per second in a single rollup.

Tezos X will also be more interoperable with plans to introduce support for mainstream programming languages like JavaScript, Python, and Java by 2025.

In addition, Etherlink,  an EVM-compatible Smart Rollup that enables the deployment of Solidity smart contracts, will also be introduced.

Tezos developers are also working on improving the developer experience with better SDKs, APIs, and tools.

Integrating Tezos blockchain into applications should be “as straightforward as importing a software library,” the developers wrote.

Tezos X is expected to roll out with key developments by 2026.

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